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Additional information on the form includes the OID on a taxable obligation for the part of the year you owned it. You report this as interest income on your income tax return. The amount you report may depend on the type of debt instrument, the issue or acquisition date, and other factors.
1040-US: Form 1099-INT data entry Form fieldFolder ScreenFieldBox 11 - Bond premiumIncome BDInterest IncomeBox 12 - Bond premium on Treasury obligationsIncome BDInterest IncomeBox 13 - Bond premium on tax-exempt bondIncome BDInterest IncomeBox 15 - StateIncome BDInterest Income17 more rows
If your debt instrument is a covered security under Regulations section 1.6045-1(a)(15), market discount, acquisition premium, or premium is reported in box 5, 6, or 10 of Form 1099-OID, respectively. The following rules generally do not apply to contingent payment debt instruments.
Original issue discount (OID). It is the excess of a debt instru- ments stated redemption price at maturity over its issue price (acquisition price for a stripped bond or coupon). Zero coupon bonds and debt instruments that pay no stated interest until ma- turity are examples of debt instruments that have OID.
However, if you acquired a tax-exempt bond at a premium, only report the net amount of tax-exempt interest on line 2a of your Form 1040 or 1040-SR (that is, the excess of the tax-exempt interest received during the year over the amortized bond premium for the year).
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If you held the obligation the entire year, report this amount as interest income on your tax return. Enter on 1099-INT worksheet, Box 1 - Interest income. If there is an amount in both boxes 2 and 8, the amount in box 2 is interest on a U.S. Treasury obligation and is exempt from state and local income taxes.
Bond premium refers to purchasing a bond above par (face) value. For taxable bonds, bond premium can potentially represent a reduction to yearly income. Acquisition premium generally applies to zero coupon bonds, but can also apply to coupon paying bonds issued at a discount.
The purpose of this publication is: to help brokers and other middlemen identify publicly offered original issue discount (OID) debt instruments they may hold as nominees for the true owners, so they can file Forms 1099-OID or Forms 1099-INT as required, and.

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